Gold and silver prices today: Yellow metal holds steady after dipping for 8 consecutive sessions

Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 56,828 per 10 grams and hit an intraday low of Rs 56,825. In the international market, prices hovered around $1,826.25 per troy ounce. Meanwhile, silver opened at Rs 67,450 per kg, hit an intraday low of Rs 67,422 on the MCX, and hovered around $21.17 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price steadied, getting a reprieve after declining in the previous eight consecutive sessions, as US bond yields and the dollar stepped back from highs ahead of a keenly awaited nonfarm payrolls report this week.”

Benchmark U.S. 10-year bond yields fell from 16-year highs, hovering around 4.7%, and the US dollar was 0.1% lower, trading below the 107 mark.

“As expected, gold prices corrected sharply yesterday by 0.36% and closed at a seven-month low of 56721 on the back of strength in the dollar index. The Dollar Index is trading at an 11-month high level at 106.32 levels and putting pressure on gold as demand shifts from gold to the dollar,” said Anuj Gupta, Head of Commodity and Currency at HDFC Securities.

“A broad sell-off in government bonds on Wednesday drove up US 30-year Treasury yields to 5% for the first time since 2007 and German 10-year yields to 3%, which could hasten a global slowdown and hurt stocks and corporate bonds,” said Modi.

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On the data front, U.S. private payrolls increased far less than expected in September. It was reported at 89k, against the expectations of 153k. Markets now await the Labor Department’s more comprehensive and closely watched employment report for September on Friday.

The U.S. services sector slowed in September as new orders fell to a nine-month low, while the factory orders were reported better than expectations, capping gains for metals on the higher side. “Focus today will be on Services PMI from India, US weekly jobless claims and comments from a few fed officials,” added Modi.

Spot gold closed with a loss of 0.10% at $1821 despite the U.S. Dollar Index and the ten-year U.S. yields retreating.

Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Investment demand for gold remains anaemic as the total known global gold ETF holdings fell for the third straight day to a fresh cycle low. Support is at $1815/$1800. Resistance is at $1850/$1858. The metal is expected to consolidate ahead of Friday’s U.S. nonfarm payroll report.”